Prospects of Mobile Banking

Abstract

The revolution in information technology, since Globalization has made a remarkable change in the functioning and growth of banking sector in India. Traditional banking system is now replaced by modern convenience banking with the introduction of value added and customized products. Recent
innovations in telecommunications have enabled the launch of new access methods for banking services through various e-channels like ATMs, credit/debit cards, internet banking, mobile banking, tele banking, EFT etc. The most popular among these products is the mobile banking which has gained overwhelming support right from youth to senior citizens of the country. Customers interacting with banks via mobile phone is termed as mobile banking. After the launch of mobile phones in India, mobile banking transactions have increased .This has definitely increased the operational efficiency and profitability of not only the banking sector but also commerce and trade activities in India. India has been ranked as second largest internet user country in the world. By designing and offering simple, safe and secured technology, banks now reach at the doorsteps of the customers with the prime objective of ‘delight customer satisfaction’ An attempt has been made in this present paper to focus the benefits enjoyed by the customers through mobile banking, problems encountered, recent trends in the growth of mobile banking and its future prospects. Finally, methods for improving the mobile banking system has also been discussed.